In Washington nobody likes to talk about the “s-word” but as March 1, the deadline for the across-the-board budget cuts grows closer, conversations about sequestration are becoming all-consuming. “It is just occupying everyone's time,” says Pentagon industrial base chief Brett Lambert. Unless lawmakers pass a new agreement by the end of the month, $85 billion in across-the-board budget reductions will take place for fiscal 2013. It is the first increment in a 10-year, nearly $1 trillion package of spending cuts.
Aug. 10, 1628: Vasa, first of a new class of ships intended to change the balance of power in Nordic waters, left her Stockholm yard for the first time. As she left the lee of the city, she heeled sharply, flooded and sank. The shipwrights blamed the sailors for demanding too many guns. This is related to the news that full-scale development of the JAS 39E version of the Saab Gripen will cost 13.1 billion kronor ($2.1 billion) over five years. That is about 1 billion kronor less than Saab's last major effort, the JAS 39C/D.
L-3 Communications is exploring whether a German concept from World War II could boost the intelligence, surveillance and reconnaissance (ISR) capability of small naval vessels. During the war, the Germans developed the Focke-Achgelis FA 330 Bachstelze (Wagtail), an unpowered autogyro capable of lifting a man. It was towed behind prowling U-boats and used to spot targets and possible threats. The pilot would bark sightings by telephone to the submarine.
Orbital Sciences Corp. hopes to launch its first Antares rocket next month, paving the way for a second commercial cargo service to the International Space Station (ISS) by summer. The plan assumes a successful on-pad hot-fire test of the liquid-fueled Ukrainian-built rocket, but it will not be delayed by inconclusive results from a NASA probe into the cause of a fairing-separation problem that destroyed the $388 million Glory atmospheric-research mission in 2011.
Despite the financial and legal issues that have recently afflicted its parent, Finmeccanica, AgustaWestland is pushing ahead with development and flight-testing of three new rotary-wing aircraft at the same time.
President Obama's crusade to increase a small sliver of taxes on the nation's wealthiest has long capitalized on a convenient symbol of privilege: the corporate jet. Those talking points are landing like stray arrows on the makers of business jets, and manufacturers are fuming.
The unique design of Piaggio Aero's P.180 Avanti business turboprop has always turned heads. With its unusual blend of three-surface configuration and pusher propellers, the aircraft is well-known for its performance and Italian flair. But the type has never sold as well as competitors such as Beechcraft's King Air. So now Piaggio is exploring new markets for the Avanti, hoping that its latest development can secure a niche that has until now been dominated by products from Israel and the U.S.
Eurocopter has been building a relationship in Mexico for 30 years. So in 2010, when the government here asked for an offset agreement as a condition for selling 15 EC725 long-range tactical transports to the Mexican air force and navy, the company readily agreed. “At Eurocopter, proximity [to our markets] is a key word, part of our DNA,” President/CEO Lutz Bertling said at the opening of a $100 million factory here last month that is the offset payoff for that contract.
A disadvantage of trying to develop and field new technology rapidly to meet urgent operational requirements in wartime is that there is not much leeway when things do not go as planned. Now the U.S. Army has canceled Northrop Grumman's Long-Endurance Multi-intelligence Vehicle (LEMV), because technical and performance problems and budget constraints meant the 300-ft. surveillance airship could no longer provide an operational capability in Afghanistan in the timeframe required.
NEW YORK — EADS is revising its goal for equal revenues from its civil and defense programs by 2020 after failing to finalize its merger with BAE Systems and accounting for cuts in government defense spending. But the European manufacturer has yet to decide on a new target and the future direction of its Cassidian defense business.
OBAMA ON TOUR: Many Republicans spent last summer touring the nation’s military towns talking about the prospect of sequestration. Now President Barack Obama is on the sequestration circuit, planning to stop at Newport News Shipbuilding on Feb. 26. The Virginia congressional delegation’s response: It’s about time. “While the president speaks in Newport News at the shipyard, five American aircraft carriers sit idle, capturing the stark reality of the readiness crisis that hasn’t waited until March 1 – it has already begun,” says Rep.
Fifteen Republican senators are asking President Barack Obama to withdraw the nomination of former Sen. Chuck Hagel (R-Neb.) to be secretary of defense. The senators, led by John Cornyn (Texas), are rejecting Hagel based on his support for the legitimacy of the current regime in Iran, his thoughts on Iran’s pursuit of nuclear weapons and his performance during his confirmation hearing.
EADS is revising its goal for equal revenues from its civil and defense programs by 2020 after failing to finalize its merger with BAE Systems and accounting for cuts in government defense spending. But the European manufacturer has yet to decide on a new target and the future direction of its Cassidian defense business. “There is nothing magical about the 50/50 [goal],” EADS CEO Tom Enders told Aviation Week after a Feb. 21 event at New York’s Wings Club, adding that a new target will be determined after a strategic review is concluded.
LONDON — BAE Systems has reported a fall in earnings and warned that some of its key business areas are likely to suffer further in 2013. In its 2012 results, the company said that U.S. defense budgets had “flattened” and were expected to remain constrained in response to reducing overseas operations in Afghanistan and “measures to address federal deficits.”
Pentagon UAV investments have been on the rise, ranking 46th among all non-construction-related Defense Department expenses in 2011 — the first time in recent years such expenses have cracked the top 50, according to an exclusive Aviation Week Intelligence Network (AWIN) analysis. The Pentagon cost category “drones” reached $1.5 billion in contracts and contract modifications, according to AWIN’s analysis of contracting data aggregated by the National Institute for Computer-Assisted Reporting.
The Pentagon spent years studying how to navigate the effects of budget cuts on its industrial base. Now, cuts are likely to be imposed on the Defense Department, which will have little ability to manage them, officials fear.
ABU DHABI — Saab officials say they are open to ideas about additional expansion in the Middle East following the successful creation of a new subsidiary in the United Arab Emirates. The Abu Dhabi Advanced Radar Systems (ADARS) was formed by Saab in partnership with the UAE defense holding company Tawazun earlier in February with the express purpose of developing new radar systems for the Middle East market. But Micael Johansson, Saab’s senior vice president for electronic defense systems, says the opportunities don’t just end with radars.
BENGALURU — Thales’ joint ventures in India are structured to give the French conglomerate an edge when competing for defense contracts in the country. The company’s managing director for India, Eric Lenseigne, says Thales recently announced two major joint ventures with Indian companies: Bharat Electronics Ltd. and Samtel. Thales has capped its stake at 26%, in line with India’s foreign ownership laws for defense companies. But Lenseigne says this also means that the work these Indian joint ventures do qualifies for offsets.
